UK Inflation held steady at 3% this morning to keep in line with projections, although it is expected that inflation will start to climb upwards again as this reading for February was taken before the beginning of the Middle Eastern conflict. This was reflected in the fact that although clothing prices increased compared to this exact time a year ago, there was a fall in petrol prices.
A backdrop of inflation rising in the coming months is the prospect of interest rates being increased by the Bank of England as it looks less likely that inflation falls to the desired 2% mark anytime soon.
Developments overnight between the U.S and The Middle East seem to suggest an agreement has been put in place for Iran to no longer have nuclear weapons, as well as seemingly opening The Strait of Hormuz which has since seen a slight reprieve in the prices of Oil & Gas this morning. A 15-point plan has also been provided to Iran detailing other crucial parts of this ‘deal’. However, Iran is currently denying any deal has been agreed so there is still an element of uncertainty within the markets.
One mitigating factor behind all of these negotiations is the price of Oil, and this is a big reason why China have also decided to get involved in negotiations to help bring this agreement over the line.
GBP/EUR 1.1546 GBP/USD 1.3394 GBP/AED 4.9226
GBP/AUD 1.9237 GBP/CHF 1.0572 GBP/CAD 1.8480
GBP/NZD 2.3041 EUR/USD 1.1588 GBP/ZAR 22.6297